The relationships between tacit and explicit knowledge management strategies and methodologies and firm financial and innovation outcomes

The problem. The purpose of this study was to determine whether relationships exist between (a) firm strategy, (b) knowledge strategy, (c) knowledge methods used, (d) tacitness of each method, and (e) the innovation and financial outcomes. In addition, this study determined the relationship between the strategy types and their use of tacit and explicit methods. This study also researches whether the use of knowledge management within the firm creates a core competence in knowledge management.; The method. A survey was sent to six industry experts to determine a common definition of tacit knowledge and to determine the degree of tacit knowledge usage in each knowledge management method. After analysis of these data from industry experts, a pretest was sent to 10 qualified persons to determine the contact validity of the survey. The final survey of 1,000 companies that used knowledge management was conducted. The companies were identified from lists of companies that use knowledge management, through industry magazines, journals, and published case studies. The survey was directed to senior executives (Chief Executive Officer, Chief Information Officer, and Chief Knowledge Officer) and middle management personnel who were asked questions to determine the firm's strategy, the knowledge strategy of the firm, the knowledge management methods used, and the innovation, strategic, and financial outcomes. The study determined the relationship of strategy to the methods employed and, between each pair of strategic type groups and within each group, which methods were more effective. The study also identified the organizations that developed a core competence by asking the senior managers to identify core competencies derived from knowledge management.; Results. The study confirmed the positive relationship between the use of knowledge management methods and the innovation, economic, and strategic outcomes. It developed the hypothesis that those knowledge management systems that use more tacit-centered methods perform better in all three outcomes. The study further developed the most effective knowledge management method use by strategy type.